U.S. Losing Key Anti-Terror Ally

For someone considered a political newcomer, President Gloria Macapagal Arroyo has had a full plate: insurgencies, turbulent political divisions, a sagging economy, crushing poverty and a leading role in Washington's war against terrorism in Asia.

Arroyo surprised her nation Monday when she announced she would not run in 2004 presidential elections, citing the same illnesses in her impoverished Southeast Asian nation that moved many Filipinos to help her oust predecessor Joseph Estrada — a former movie actor — on corruption charges.

Arroyo, the 55-year-old daughter of a late president, has struggled in her two years in office to introduce reforms, order and development to a nation plagued by Muslim separatists and Marxist rebellions, crime, corruption and turbulent politics.

But the problems didn't go away, and Arroyo found herself transformed from a heroine hailed by tens of thousands of protesters to a villain whose effigy was regularly set ablaze by anti-U.S. activists.

Arroyo was catapulted to the presidency on Jan. 20, 2001, when Estrada, disdained by the church and businessmen for his carefree lifestyle, slipped out the back door of the palace amid massive demonstrations surrounding a corruption scandal. Arroyo broke away from Estrada's administration months before, and led street protests against him.

Some critics say Arroyo lacked the strong political base and savvy to deal with the poor Asian nation's rough politics and security problems. An archipelago of nearly 7,000 islands and 76 million people, the Philippines has enormous social problems, a fragile democracy and decades-old Muslim separatist and communist rebellions.

Thousands of poor Estrada followers stormed the presidential palace in May last year demanding his reinstatement. What followed was a night and day of mayhem that left at least six people dead, more than 100 wounded and a nation in shock at the brutal clashes.

Within earshot of the crackling automatic weapons fire, Arroyo calmly directed operations and met with her Cabinet, phone constantly in hand, aides say. At one point, she went outside the palace to inspect its defenses. Surviving the attack, Arroyo then went after opposition politicians she said were behind what she called a failed coup.

Barely rested from that turmoil, Arroyo faced another crisis when the Muslim extremists of the Abu Sayyaf raided a Philippine resort and abducted 20 hostages, including three Americans. The raid started a yearlong kidnapping spree that would ensnare 102 people and further strangle the nation's tourism industry and spook financial markets.

Following the Sept. 11 attacks, Arroyo became one of the first Asian leaders to throw full support behind the Washington-led war on terror, allowing U.S. troops to enter the country to train troops fighting Muslim guerrillas. Arroyo portrayed herself as a tough fighter against terror.

Abu Sayyaf is suspected of ties to al Qaeda.

Arroyo distinguished herself in the war on terror where others in Southeast Asia, like Indonesian President Megawati Sukarnoputri, fell short, at least in the eyes of American diplomats. The Philippines, site of numerous crucial battles in the Pacific theater of the Second World War, has long been a key U.S. partner in the region.

Between wars with Muslim and communist insurgents and a series of related deadly bomb attacks, Arroyo tackled rising crime, particularly high-profile ransom kidnappings and drug trafficking.

Her backing of the U.S.-led war on terror caused left-wing activists who helped her to power to withdraw their support. Other moderate groups distanced themselves from Arroyo, accusing her government of failing to stem corruption or give the nation solid direction.

But the conservative Roman Catholic church and the military remained by her side.

When U.S. officials placed communist guerrillas on a list of foreign terrorist groups last August, the rebels intensified attacks nationwide, and for the first time decided not to declare a traditional Christmas truce.

Corruption allegations against her husband and a key Cabinet member drove the usually media-savvy Arroyo away from the cameras and the press. The accusations were made by Mark Jimenez, a lawmaker extradited to Florida last week on charges of illegal campaign contributions to the Democratic Party.

Hounded by the problems, Arroyo, a Catholic, traveled last week to a pine-clad presidential retreat in the cool, northern mountain resort city of Baguio to ponder her political career, closeting herself for prayers.

She emerged Monday and stunned many Filipinos with her decision not to run for the presidency to save a nation long exasperated with rowdy and corrupt politics, poverty and security woes.

"I saw that the country still has not united," Arroyo said in a speech Monday.

"The poison in the air is so pervasive so I thought if this would be the atmosphere under which I would rule, how would I chart the country toward a bright future?"